Laserfiche WebLink
<br /> <br />-2- <br /> <br />Discussion <br /> <br />Loan origination fees or loan closing costs are typical in the banking business. The money <br />generated from those fees, together with interest charges, is considered the financial institutions <br />operating revenue. The CWCB is funded approximately 50-50 from the State's general fund and the <br />Construction Fund revenues, Recent budget constraints to the State's general fund have put a <br />financial burden on the operations of the CWCB. Several areas crucial to the efficient functioning of <br />the CWCB, including the Construction Fund Loan Program, have been impacted by the State's <br />budget crisis including travel, general agency operating funds, and personal services. <br /> <br />During the last two months of fiscal year 02 the Water Supply Planning and Finance Section <br />was required to reduce the services ofthe Attorney General's office that directly impacted the timely <br />completion of loan contracts, Also, with the reloca~ion of the Water Supply Planning and Finance <br />Section to 1580 Logan St. (due to the overcrowded conditions at 1313 Shennan St.) additional costs <br />will be incurred such as rent, administrative staff and equipment, and general operating overhead, <br />Additional staff may also be required in the future based on an increased volume of loans and non- <br />reimbursable investments, <br /> <br />The typical annual volume of completed loan contracts over the past three years has been <br />approximately $30 million. The proposed fee schedule included in Policy #16 will generate <br />$300,000 annually to supplement the operations of the Water Supply Planning and Finance Section <br />as they operate the two loan programs and provide support services to the CWCB staff. This <br />represents an increase of less than 10% to the current CWCB operating budget. <br /> <br />Staff recommends implementing this policy on January I, 2003 since the current loan <br />applicants have not been infonned of the proposed fee schedule. Any loans approved by the Board <br />after that date would be subject to the service charges. The loans being presented at the November <br />board meeting, and included in this years Construction Fund Projects Bill, would therefore not be <br />subj ect to the service charges. <br /> <br />Recommendation <br /> <br />Staff recommends the Board consider the proposed Policy #16 as shown in the attached policy <br />statement. The Policy can be tabled with revisions 1,Intil the November Board meeting, approved as is, <br />or be dismissed at the Board's discretion. . <br /> <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection' Conservation Planning <br /> <br />~ <br />e <br /> <br />e <br /> <br />e <br /> <br />